Car giant General Motors has filed for bankruptcy protection from its
creditors, representing the biggest failure of an industrial company in US
The company has floundered in recent years after sales nosedived, but the
credit crunch has exacerbated the situation to such an extent the company has
been forced to file a Chapter 11 petition, ring-fencing itself from creditors.
The US government is now expected to take a 60% stake in the company,
bankrolling it to the tune of $30bn (£18.5bn) , while a sweeping restructuring
GM will move forward with four core brands — Chevrolet, Cadillac, Buick and
GMC — and cut four others. The company plans to shed 21,000 staff, about 34
percent of its workforce.
GM has already been gifted $20bn of state aid since the end of last year, but
its bankruptcy filing revealed its debts of $173bn dwarfed the handout.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children